Deciding right on voluntary redundancy

London: Is voluntary redundancy an opportunity to be paid to change direction, or a foolish leap of faith into choppy waters? To those who are facing or have been through compulsory redundancy, being worried by an offer of voluntary redundancy must seem self-indulgent. Many would consider the choice of staying in the same job or receiving a large sum of money to go away a luxury.

If such an option were offered in better economic times, when the potential for finding a new job was greater, they would be right.

Ironically, a good redundancy package can make the decision even more complicated. "I was recently offered more than a year's salary to take voluntary redundancy," says Sarah, who works in publishing. "It was a lot of money and could have nearly paid off my mortgage. I decided against in the end because I wasn't certain I would find other work, but I'm still not sure I made the right decision."

Making such a choice is entirely personal, says Elaine Smith of Zest Business Coaching, which runs courses to help people cope with change, including redundancy: there is no right or wrong answer.

"What is crucial is to make sure you ask yourself the right questions so that you are entirely confident about the decision you eventually make," she says.

Most people fear change, especially when it is thrust upon them. So what should you do to prevent this fear pushing you into the wrong decision?

Thinking it out

"People don't give themselves time to think decisions through properly, to reflect on what is really important to them," says Smith.

People being offered voluntary redundancy should look at the physical and emotional impact of any change in addition to the financial implications and then work out whether they can do anything positive to mitigate that impact.

Gareth Chick, human resources specialist and director of Spring Partnerships, says: "Talk it over immediately with a small number of people who care about you, your spouse obviously, but maybe also a close friend and maybe a son or daughter who is working, if you have one. These people will help you to think through your options. They will sympathise with your predicament but they will also quickly move to bolster your confidence and help you turn it to your advantage."

Most people think about change negatively, says Smith, but to make a clear decision, you need to understand why. Was it, for example, imprinted on you in your childhood that it is better to be in a "secure and steady" employed position, even if you don't enjoy that job, than work in a variety of consultancies?

Once you have identified why you are thinking in a particular way, you are better able to work out if it is a reasonable opinion. Or are there solutions, once you allow yourself to look for them?

"We try to encourage [clients] to play ‘what if' in a positive way," says Smith. "What if I get the job I've wanted for years but have never had the courage to apply for? What if I set up my own business, and it flies? Don't just think of the threats try to consider the opportunities," he advises.

"Sometimes they will still find negative outcomes, such as ‘I'm going to have to work all the time, it will have a huge impact on the family', ‘I will be lonely and have no one to talk to', or ‘I won't be able to go skiing three times a year'.

Alternatively, they can say ‘I know it will be really hard for the first couple of years and the bits that are important to me are that I should take time out/find someone to bounce ideas off/develop a support network.'"

Chick agrees: "I know it sounds crass, but stay positive so many people who endure the shock and trauma of redundancy go on to experience it as the best thing that ever happened to them, so make sure you are thinking as clearly as possible before deciding."

Employers offering voluntary redundancy want to achieve a certain headcount loss so they do not have to resort to forced redundancies. They may, therefore, be willing to offer more than they first put on the table.

Negotiations

Play up any and every positive aspect of your employment record, such as attendance records, past employee recognition or really positive appraisals. Since you have shown dedication and loyalty, the least they can do is match this now.

Ask for additional periods of notice, or maybe outplacement support to put you in a strong position for finding new work.

Chick suggests using a third party to do the negotiation for you. However, whether you or a representative are handling negotiations, he adds: "Treat the people who are communicating the decision to you with respect. The more you make their life easy, the more you will get out of them."

Get legal help to check the compromise agreement (the terms that you agree to on leaving).

Consider what else you could do, even if you end up turning down the chance to leave, says Chick.

"Really understand your financial situation and how long the redundancy pay would last you before you gained employment again, or indeed what new lower salary you could survive on if you could find something to work or train in that you really love."

If a course of action seems frightening, consider what you could do to eliminate the elements that worry you.

For example, if you are considering going freelance and the type of job you do lends itself to working on a freelance basis changes to the way you would have to work could put you off.

"If you have previously been employed in an office, you are probably used to having social contact and a support network," says Smith. "Self-employment might seem challenging because it's outside those networks. But could you replicate that social contact elsewhere in self-employment?"

Someone in this position could share an office, set up in business with a partner, ensure that at least part of the day is spent out meeting clients or working in their premises, or join trade associations that enable them to network and keep up with the gossip in their industry.

The options to consider may not just be work-related. Rob, a company manager and main earner for his family, was offered more than £80,000 (Dh465,470) in voluntary redundancy more than enough to keep his household going provided they moved out of London.

His work was highly pressurised and he was inclined to take up the offer but for his daughter who attended a highly academic school in London.

He felt that his daughter's future could well be affected by changing schools but if they couldn't move from London, he could not afford to give up his job.

However, Rob now admits that he didn't thoroughly research whether there were schools in the area to which his family wanted to move, that could replicate the academic performance of his daughter's current school.

Smith comments: "If you have been doing a particular thing for a long time, it becomes difficult to see that there might be another way to do that, be it the school your children go to, the neighbours you live next door to, or the way you earn your living."

When a workplace starts making redundancies, the change effects everyone, including those left behind.

Chick says: "Read up about the company's prospects or even take some advice if this round of voluntary redundancies is just a precursor to a later round of forced cuts, then the package on offer now might be as good as it gets."